BE8.

3
Bad Debt Expense 31,000
Allowance for Doubtful Accounts 31,000

Statement of financial position

Current Assets
Prepaid Insurance 7,500
Inventory 130,000
Accounts Receivables 600,000 569,000
Allowance for doubtful accounts 31,000
Cash 90,000
Total Current Assets 796,500

BE8.4
Allowance for Doubtful Accounts 6,200
Accounts Receivables 6,200

Before Write-Off After Write-Off

Accounts Receivables 700,000 693,800
Allowance for Doubtful Accounts 54,000 47,800
Cash realizable value 646,000 646,000

BE8.5
Accounts Receivables 6,200
Allowance for Doubtful Accounts 6,200

Cash 6,200
Accounts Receivables 6,200

BE8.6
Bad Debt Expense 2700
Allowance for Doubtful Accounts 2700

Bad Debt Expense 5000

BE8.7
a) Cash 168
Bank Service Charge Expense 7
Sales Revenue 175
b) Cash 58200
Service Charge Expense 1800
Accounts Receivables 60000

BE8.8
Face Rate Time Interest
80000 6% 0.16667 800
64000 7% 0.25 1120
12000 8% 0.20833 200

BE8.10
Accounts Receivables 84600
Sales Revenue 84600
Notes Receivables 84600
Accounts Receivables 84600

BE8.1
a) Accounts Receivable 64000000
Sales Revenue 64000000
b) Notes Receivable 57000000
Sales Revenue 57000000
c) Other Receivable 10000000
Cash 10000000

BE8.2
a) Accounts Receivable 17200
Sales Revenue 17200
b) Sales Revenue 3800
Accounts Receivable 3800
c) Cash 13132
Sales Discounts 268
Accounts Receivable 13400
BE8.11
a) Bad Debt Expense 18000
Allowance for Doubtful Accounts 18000
b) Supplies
Inventory
Cash
c) 10
36.5
P8.3
a) Bad Debt Expense 26610
Allowance for Doubtful Accounts 26610
b)
31-Mar Allowance for Doubtful Accounts 1000
Account Receivables 1000
31-May Account Receivables 1000
Allowance for Doubtful Accounts 1000
Cash 1000
Account Receivables 1000
c) Bad Debt Expense 32400
Allowance for Doubtful Accounts 32400

P8.6
Face Rate Time Interest
6000 8% 0.25 120
7800 10% 0.166667 130
10000 6% 0.083333 50

a)
5 Account Receivables 4500
Sales Revenue 4500
14 Service Charge Expense 18
Cash 582
Sales Revenue 600
20 Cash 6120
Interest Revenue 120
Notes Receivable 6000
24 Cash 7930
Interest Revenue 130
Notes Receivable 7800
31 Interest Receivable 50
Interest Revenue 50
(Accrued Interest Revenue of BMG Corp.)

b)
Accounts Receivable Notes Receivable
5 4500 Bal. 23800 6000 20
Bal. 4500 7800 24
Bal. 10000
 Interest Receivable
31 50
Bal. 50

c) Current Asset
Notes Receivable 10000
Accounts Receivable 4500
Interest Receivable 50
14550

P8.7
5-Jan Accounts Receivable 20000
Sales Revenue 20000
20-Jan Notes Receivable 20000
Accounts Receivable 20000
18-Feb Notes Receivable 8000
Sales Revenue 8000
20-Apr Cash 20400
Notes Receivable 20000
Interest Revenue 400
30-Apr Cash 25750
Notes Receivable 25000
Interest Revenue 750
25-May Notes Receivable 6000
Accounts Receivable 6000
18-Aug Cash 8360
Notes Receivable 8000
Interest Revenue 360
25-Aug Accounts Receivable 6105
Notes Receivable 6000
Interest Revenue 105
1-Sep Notes Receivable 12000
Sales Revenue 12000

P8.1
a)
1 Accounts receivable 3700000
Sales Rev 3700000
2 Sales Returns & All 50000
Acc Recei 50000
3 Cash 2810000
 Acc Recei 2810000
4 Allowance 90000
Acc Recei 90000
5 Accounts receivable 29000
Allowance 29000
Cash 29000
Acc Recei 29000

b) Allowance Acc Recei

Balance 19000 1710000

c)
Bad Debt 96000
Allow 96000

d)
3650000
1237500 1614000
2.949494949495

P8.2
a)
33000
b)
52500
Bad Debt 49500
Allow 49500

P8.4 a)
77000 46000 39000 23000 15000
1% 4% 5% 8% 20%
9400
b)
BD 17400
Allow 17400
c)
Allow 5000
Acc Recei 5000
d)
Acc Recei 5000
Allow 5000
Cash 5000
Acc Recei 5000

P8.6
a)
5-Jul Accounts Receivable 4500
Sales Rev 4500
14 Cash 582
Ser charge Exp 18
Sales Rev 600
20 Cash 6120
Notes Recei 6000
Interest Rev 120
24 Cash 7930
Notes Recei 7800
Interest Rev 130
31 Interest Recei 50
Interest Rev 50
b)
Acc Notes Interest Recei
4500 10000 50

P8.8
E8.2
1 Accounts Receivable 5000
Sales Revenue 5000
3 Sales Returns and Allowances 500
Accounts Receivable 500
9 Cash 4410
Sales Discounts 90
Accounts Receivable 4500
15 Accounts Receivable 400
Sales Revenue 400
31 Accounts Receivable 6
Interest Reveue 6

E8.3b
10-Jan Accounts Receivable 9000
Sales Revenue 9000
12-Feb Cash 5000
Accounts Receivable 5000
10-Mar Accounts Receivable 40
Interest Revenue 40

E8.4
a) Accounts Receivable 800000
Sales Revenue 800000
Cash 763000
Accounts Receivable 763000
b) Allowance for Doubtful Accounts 7300
Accounts Receivable 7300
c) Accounts Receivable 3100
Allowance for Doubtful Accounts 3100
Cash 3100
Accounts Receivable 3100
d) Bad Debt Expense 20200
Allowance for Doubtful Accounts 20200
e) Accounts Receivable = 200000 + (800000 - 763000) - 7300 + 3100 - 3100
229700
Allowance for Doubtful Accounts = 9000 - 7300 + 3100 +20200
25000
f) Net realizable value = Accounts Receivable - Uncollectible
204700
E8.5
a) Bad Debt Expense 1400
Allowance for Doubtful Account 1400
b) Bad Debt Expense 8900
Allowance for Doubtful Account 8900
c) Bad Debt Expense 6800
Allowance for Doubtful Account 6800

E8.6
65000 2% 8675
12900 5%
10100 30%
7400 50%

Bad Debt Expense 6575

Allowance for Doubtful Account 6575

E8.7
Allowance for Doubtful Accounts 11000
Accounts Receivable 11000

Accounts Receivable 1800

Allowance for Doubtful Accounts 1800
Cash 1800
Accounts Receivable 1800
5800
Bad Debt Expense 13200
Allowance for Doubtful Accounts 13200

E8.8
Bad Debt Exp 9000
Allowance for Doubtful Accounts 9000
Allowance for Doubtful Accounts 1100
Accounts Receivable 1100

Accounts Receivable 1100

Allowance for Doubtful Accounts 1100
Cash 1100
Accounts Receivable 1100

E8.9
a) Cash 630500
Service Charge Exp 19500
Accounts Receivable 650000
b) Cash 2880
Service Charge Exp 120
Sales Revenue 3000

E8.10
a) 2/4 Accounts Recei 1500
Sales Revenue 1500
3-May Cash 500
Accounts Recei 500
1-Jun Accounts Recei 10
Interest Revenue 10
b) Cash 196
Service Charge Exp 4
Sales Revenue 200

E8.11
15-Jan Accounts Receivable 18000
Sales Revenue 18000
20 Cash 4410
Service Charge Exp 90
Sales Revenue 4500
10-Feb Cash 10000
Accounts Receivable 10000
15 Accounts Receivable 120
Interest Revenue 120

E8.12 a)
1-Nov Notes Recei 300000 5000
Cash 300000
11-Dec Notes Recei 67500 300
Sales Rev 67500
16 Notes Recei 400000 1500
Acc Recei 400000
31 Interest Recei 6800
Interest Rev 6800
b)
Cash 330000
Notes Recei 300000
 Interest Recei 5000
Interest Rev 25000

E8.13
2020
1-May Notes Recei 9000
Acc Recei 9000
31-Dec Interest Recei 600
Interest Rev 600
31-Dec Interest Rev 600
Interest Summary 600

2021
1-May Cash 9900
Notes Recei 9000
Interest Recei 600
Interest Rev 300

E8.14 2020
1-Apr Notes Recei 30000 1350
Acc Recei 30000
1-Jul Notes Recei 25000 1250
Cash 25000
31-Dec Interest Recei 2600
Interest Rev 2600
2021
1-Apr Cash 31800
Notes Recei 30000
Interest Recei 1350
Interest Rev 450
1-Apr Acc Recei 26875
Notes Recei 25000
Interest Recei 1250
Interest Rev 625

E8.15
a) Notes Recei 9000
Cash 9000
b) Acc Recei 9315
Notes Recei 9000
Interest Recei 315
c) Allowance for Doubtful Accounts 9000
Notes Recei 9000
Practice Brief
a) 1-Nov Notes Receivable 20000
Cash 20000
12-Dec Notes Receivable 9000
Sales Revenue 9000
16 Notes Receivable 8000
Accounts Receivable 8000
31 Interest Receivable
Interest Revenue

Practice Problem
1-Mar Accounts Receivable 20000
Sales Revenue 20000
11 Cash 19600
Sales Discounts 400
Accounts Receivable 20000
12 Notes Receivable 20000
Accounts Receivable 20000
13 Accounts Receivable 13200
Sales Revenue 13200
15 Cash 6499
Service Charge Expenses 201
Sales Revenue 6700
11-Apr Cash 7840
Service Charge Expenses 160
Accounts Receivable 8000
13 Cash 8200
Accounts Receivable 8200
Accounts Receivable 75
Interest revenue 75
10-May Allowance for Doubtful Accounts 16000
Accounts Receivable 16000
30-Jun Bad Debt Expense 16500
Allowance for Doubtful Accounts 16500
16-Jul Cash 4000
Accounts Receivable 4000
Accounts Receivable 4000
Allowance for Doubtful Accounts 4000
8.2a
Bad Debt Expense 9400
Allowance 9400

8.2b
Cash 166600
Service Charge Expense 3400
Accounts Receivable 170000

8.3
186

8.4
12.5
29.2